The Increasing Series A and B Valuation Hurdles

Ten years ago, the median Series B sat at a $35M pre-money valuation, smaller than today's $60M Series A.

In 2026, jumping from Series A to Series B means you have to clear a $187M pre-money valuation hurdle. Meanwhile, Series B deal volume is down more than 50% from 2021.

If you aren't building in AI, that bottom bar suggests a more promising trend. Non-AI valuations appear to have barely moved since 2021.

But that's very misleading. With 83% of all venture dollars flowing into AI this year, non-AI Series B valuations are holding at $117M because VCs are rationing those scarce checks to $12M–$15M ARR, high gross margin outliers.

Only 254 non-AI startups closed a Series B through Q3. The $5M–$8M ARR startups that cleared Series B five years ago are now shut out.

Don't blindly sprint toward a Series B when the data shows you won't clear that bar.

Cut unprofitable burn and get to Default Alive while you still have 12+ months of cash. Find a rate of sustainable growth so you can either reaccelerate into your Series B, build a profitable business on your terms, or set up an M&A process from a position of strength.

Take charge of your startup's destiny.